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The Canadian Dollar Would Depreciate on the Foreign Exchange Market

Question 25

Multiple Choice

The Canadian dollar would depreciate on the foreign exchange market if:


A) Canadian consumer tastes change in favor of goods produced domestically
B) The profitability of assets in Canada rises relative to the profitability of assets abroad
C) Canada experiences a disastrous wheat-crop failure,leading to imports of more wheat
D) Canada realizes technological improvements in the production of manufactured goods,leading to relatively low costs for Canada

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